What’s this I hear about Our Place?

TiltonBB · 10-17-2018, 06:48 AM

Businesses who pay their workers in cash avoid having to pay their share of payroll taxes--7.65% of employee salary up to an annual ceiling. They also don't pay unemployment insurance or workers compensation premiums. This can cut their payroll costs by 20% to 30%.

Owners of cash-intensive businesses often pocket cash payments from customers to avoid having to pay sales taxes and/or income taxes. Many will offer discounts to customers who pay by cash instead of credit cards. It has been estimated that owners of small businesses with substantial cash revenue fail to pay about half their taxes.

The worldwide underground economy amounts to $2 trillion per year. That's two-thousand billion dollars upon which no taxes are paid to governments around the world. The IRS says that the United States lost $500 billion in taxes in 2012 because of unreported income.

10-17-2018, 06:48 AM	#10
TiltonBB Senior Member Join Date: Feb 2005 Location: Gilford, NH and Florida Posts: 3,068 Thanks: 726 Thanked 2,238 Times in 957 Posts	Underground Economy Businesses who pay their workers in cash avoid having to pay their share of payroll taxes--7.65% of employee salary up to an annual ceiling. They also don't pay unemployment insurance or workers compensation premiums. This can cut their payroll costs by 20% to 30%. Owners of cash-intensive businesses often pocket cash payments from customers to avoid having to pay sales taxes and/or income taxes. Many will offer discounts to customers who pay by cash instead of credit cards. It has been estimated that owners of small businesses with substantial cash revenue fail to pay about half their taxes. The worldwide underground economy amounts to $2 trillion per year. That's two-thousand billion dollars upon which no taxes are paid to governments around the world. The IRS says that the United States lost $500 billion in taxes in 2012 because of unreported income.